Business
RH reports worse-than-expected tariff hit, earnings miss
Shares of RH fell slightly Friday after the luxury furniture retailer significantly missed revenue expectations in its fiscal second-quarter earnings report and slashed its full-year revenue outlook.
The chain said Thursday that it will take another $30 million hit to its forecast because of tariffs, even though the retailer stood by its full-year projection three months ago in its fiscal first-quarter earnings report.
It now sees full-year revenue up 9% to 11%, compared with a prior outlook of 10% to 13%, and adjusted earnings before interest, taxes, depreciation and amortization margins of 19% to 20% compared with previous estimates of 20% to 21%.
RH reported revenue of $899 million compared with Wall Street estimates of $905 million. The company also delayed the introduction of its Fall Interiors Sourcebook by roughly two months as it waited to finalize pricing depending on tariff announcements.
“We now expect approximately $40 million in revenues to shift out of Q3 and into Q4 and Q1 2026,” CEO Gary Friedman wrote in a letter to shareholders.
Gary Friedman, CEO, Restoration Hardware
Scott Mlyn | CNBC
The company is also facing uncertainty as President Donald Trump has threatened to put new tariffs on imported furniture.
In late August, the president said his administration was conducting a 50-day investigation to establish a yet-to-be-determined tariff rate on imported furniture. The move is meant to “bring the furniture business back” to the U.S., Trump added at the time.
“Just when you might have thought the tariff conversation was complete, the announcement of a new furniture investigation and the possibility for additional furniture tariffs, on top of existing furniture tariffs, and incremental steel and aluminum tariffs were introduced with the goal of returning furniture manufacturing back to America,” Friedman wrote. “We believe most in our industry hope that this investigation surfaces the difficulty of that task, as current manufacturing for high quality wood or metal furniture does not exist at scale in America.”
RH’s fiscal second-quarter earnings report, including its significant global tariffs hit, did not include any estimates of what changes the company might see if Trump follows through with the furniture tariff. The company is continuing to shift operations out of China and searching for alternatives to its India manufacturing.
“While there remains uncertainty until tariff investigations are complete, we have proven we are well positioned to compete favorably in any market condition,” Friedman wrote.
New Delhi: Indian stock markets are shut today, January 15, after the Maharashtra government declared a public holiday for municipal elections in Mumbai and several other parts of the state. While the move aims to ensure smooth voting, it has sparked a debate in the financial world with Zerodha CEO Nithin Kamath strongly criticising the closure of both the NSE and BSE, calling it a case of “poor planning.”
Kamath Flags Global Impact of Local Market Holiday
In a post on X, Nithin Kamath pointed out that Indian stock exchanges are deeply connected with global markets, yet were closed today due to local municipal elections. Quoting Charlie Munger, he wrote, “Show me the incentive, and I will show you the outcome.” Kamath said the holiday continues because no one who matters has any incentive to oppose a market shutdown, adding that such decisions underline how far India still needs to go to earn the confidence of global investors.
Indian stock exchanges are closed today for Mumbai’s municipal elections.
The fact that our exchanges, which have international linkages, are shut down for a local municipal election shows poor planning and a serious lack of appreciation for second-order effects.
As Munger…
— Nithin Kamath (@Nithin0dha) January 15, 2026
Holiday Added at the Last Minute
The trading holiday on January 15 was not part of the stock exchanges’ original 2026 trading calendar and was added only earlier this week. Both the BSE and NSE later issued separate circulars confirming that trading would remain suspended today due to municipal corporation elections in Maharashtra.
All Key Market Segments Shut, Trading to Resume Tomorrow
Trading remained suspended across equities, equity derivatives, securities lending and borrowing, as well as currency and interest rate derivatives for the day. The commodity derivatives segment was closed during the morning session, but was scheduled to reopen for evening trading. Normal trading on both the NSE and BSE is set to resume on Friday, January 16.
Getty ImagesRegulator Ofwat has opened an investigation into South East Water (SEW) after repeated loss of water supplies across Kent and Sussex.
The investigation will consider whether the company has complied with its licence condition to provide high standards of customer service and support.
Ofwat said it was the first investigation it had launched into customer-focused licence conditions.
SEW said: “The company will always fully co-operate with any investigation by our regulators and provide any information required.”
As of Wednesday night, 10,000 properties continued to have no water supply.
Lynn Parker, Ofwat’s senior director for enforcement, said: “The last six weeks have been miserable for businesses and households across Kent and Sussex with repeated supply problems.
“We know that this has had a huge impact on all parts of daily life and hurt businesses, particularly in the run up to the festive period.
“That is why we need to investigate and to determine whether the company has breached its licence condition.”
The investigation was started after the prime minister said the situation, which affected 30,000 customers at its height, was “clearly totally unacceptable” and asked Ofwat to review the company’s licence.
SEW said some customers might not see supplies return until Friday after issues first began on Saturday in the wake of Storm Goretti and a power cut at a pumping station.
The company said it would be using 26 tankers to pump water directly into its network while working “around the clock” to fix leaks and bursts.
Ofwat already has an open investigation into SEW’s supply resilience to determine whether it has failed to develop and maintain an efficient water supply system.
As of 17:30 GMT on Wednesday, SEW said it had implemented a new recovery plan for Tunbridge Wells that involved keeping local booster pumps switched off for a further 36 hours.
The aim was that customers would wake up to a consistent supply by Friday morning.
SEW said its local drinking water storage tanks had not refilled at the speed required, so it had to extend the “outage” to allow it to recover fully.
Goldman Sachs CEO David Solomon speaks during an interview at the Economic Club of Washington in Washington, D.C., U.S., Oct. 30, 2025.
Kevin Lamarque | Reuters
Goldman Sachs is scheduled to report fourth-quarter earnings before the opening bell Thursday.
Here’s what Wall Street expects:
- Earnings: $11.67 per share, according to LSEG
- Revenue: $13.79 billion, according to LSEG
- Trading revenue: Fixed income of $2.93 billion, equities of $3.70 billion, per StreetAccount
- Investing banking fees: $2.58 billion, per StreetAccount
Goldman Sachs is set up to be a beneficiary of several trends in the fourth quarter.
Trading desks across Wall Street have benefited in the last year as President Donald Trump’s policies have roiled markets for bonds, currencies, commodities and stocks.
For instance, rival JPMorgan Chase topped expectations for fourth-quarter results on equities and fixed income trading revenue that exceeded the StreetAccount estimate by a combined $460 million.
Global investment banking revenue in the quarter was 12% higher than a year ago, according to Dealogic, which should provide a boost to Goldman’s advisory business.
The firm’s asset and wealth management division should also see gains as stock market levels remained buoyant in the quarter.
Finally, the bank said last week that its deal to offload its Apple Card business to JPMorgan would result in a 46-cents-per-share boost to quarterly results.
This story is developing. Please check back for updates.
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